China: A New Silk Road Is Launched To Link The Far East With The West

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Journalists wait to take photos of the first cargo train "Yixinou" from China's Yiwu to Spainish capital Madrid in a train station in Yiwu, east China's Zhejiang province on November 18, 2014. Growth in foreign investment into China slowed in October, the government said on November 18, 2014, amid a slowdown in the world's second-largest economy and concerns over business risks. CHINA OUT AFP PHOTO (Photo credit should read STR/AFP/Getty Images)

“That said, this trade initiative can definitely serve as an excuse to drive all these plans forward,” he says.  Amongst other things, China aims to export a large part of its excess steel to all the states included in this New Silk Road.

new china's silk road

Appetising financing

On a microeconomic scale, different plans have been approved from the provinces. Henan is one of the new special economic regions in the country. Within a 500 kilometres radius of its capital, Zhengzhou, there are a total of 420 million inhabitants. And from there they distribute some 30,000 international products throughout the country.  Their tax system is favourable compared with other places. And they aim to rise to being a reference for international e-commerce. Chang Jihong, deputy chairman of the Zhengzhou Airport Economic Zone, explains: “Our initiatives from Hanan can be included in the concept of the new Silk Road. We are financing everything with the funds earmarked for this plan.” The so-called Silk Road Fund was provided with 40 billion dollars in 2014.

This very month, the China Entrepreneurs Club, the most important private business group, whose members present annual revenues equivalent to 15% of GDP, will celebrate its annual assembly in Henan. And this is not a mere coincidence. The embassies in China of the UK, Germany, France, Canada, the US and Japan have invited cutting-edge multinational companies like BMW. Amongst Chinese businsessmen, we will find Jack Ma, founder of the giant e-commerce firm Alibaba. “During these meetings, multimillion contracts are forged,” says a source from the event. “Whether or not the Silk Road is considered, all this is used to make some juicy business deals.”

Spain still views this New Silk Road with a certain degree of scepticism. For the Chinese, the ‘road’ ends in Madrid, with the symbolic train coming from Yiwu. However, looking at the maps published in other European media, the Chinese road doesn’t go through Spain. These same headlines say this Chinese initiative is no more than empty words, but their multinationals have taken advantage of it to make a lot of money, marginalising Spain at the same time. A country which, on the other hand, is invisible in the main circles of Chinese economic power.

The Corner

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